It’s no secret that you should be saving money. If you don’t have a savings account and regularly put aside some fraction of your income, then you’re doing your future self quite a disservice. There are many reasons why saving is important for example, saving for your retirement, for your kid’s college fund, in case any essential appliances stop working, for a vacation etc. Basically, you need to save for a rainy day because you never know when you’ll need a large sum of money in your life. Many people also use their savings as capital for investments, down payment for a new home etc. Now that you understand why saving is absolutely essential, we will now cover a couple of tips that will help you to save more money in the long run.
One of the best ways to save money is to reduce how much money you spend on food. If you’re like most people, you spend hundreds of dollars on food and maybe more if you eat out a lot. You will need to assess your personal situation, however, no matter what that may be, there is definitely room to improve. For example, if you buy lunch every day at work, then you’re likely spending at least $10 per meal. If you go out to restaurants for dinner regularly, then this is an added cost that may be in the hundreds. In order to save money, you should buy more groceries and cook your own meals. It is not only more cost effective to cook your own meals but it is actually much healthier. If you think you don’t have time to do this, then you can simply schedule it on a weekend and do meal prep for your entire week. This will require some planning, however, you’ll be quite surprised at how much you can save.
Another tip that will help you to save money is to carpool. Most people spend a lot of money on gas in order to go to work. However, if your co-workers live relatively close-by, then you can organize a carpool where one person picks up and drops off 3 – 4 other co-workers on a weekly rotation. This saves a lot of money since you’ll only have to pay for a week or two of gas.
A third money saving tip is to sit down and write out how you spend money every month. This can be quite tedious to do, but it is an experiment that will benefit you greatly. There are lots of budget apps that can help you to record all of your daily expenses. Many people don’t realize how much money they spend and waste on a daily basis. However, by writing down or recording every dollar that you spend, it will help you to see your true spending habits. You should do this exercise for at least 2 weeks to a month and then assess your spending. You may realize that you spend over $100 on coffee every month at Starbucks. You may also realize some of your frivolous shopping habits. So, once you are more aware, you can decrease this type of spending and save that money instead.
Lastly, you should make saving money automatic where you don’t even have to think about it. For example, you should set up a standing order where at least 10% of your salary is transferred to another savings account that you’ve set up. This will ensure that money is saved automatically.
In closing, we have just looked at 4 tips that will help you to save more money. Be sure to implement them and your savings will steadily grow. Financial success is important but be sure to focus on your sleep health too!